Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (2) TMI 782 - ITAT INDORETDS u/s 194J - payment made to M/s. BSNL and M/s. Bharti Airtel Ltd. towards internet charges - HELD THAT:- Issue decided in favour of assessee as relying on M/S. SHRIRAM INSIGHT SHARE BROKERS VERSUS JCIT, RANGE-59 (TDS) , KOLKATA [2018 (2) TMI 744 - ITAT KOLKATA] wherein as held no TDS is required to be made on payments made towards internet and communication charges. - Decided in favour of assessee. Non-collection of TCS and interest thereon - applicability of section 206C - HELD THAT:- As submitted by the assessee before ld. CIT(A) that the assessee being a Hotel is not capable of generating waste and scrap from the manufacturer or mechanical working of materials. The scraps generated by the assessee are products purchased by it and which are no longer usable either on account of breakage or on account of being obsolete. However, since the assessee does not have any manufacturing or mechanical working processes, the scrap as defined in the said section cannot be generated. Therefore, the assessee is not covered by Section 206C. We find that in case of Navine Fluorine International Ltd. [2011 (2) TMI 1110 - ITAT, AHMEDABAD] has held that section 206C will apply only to those sellers who are engaged in the business of manufacturing or mechanical working of materials. Thus, on consideration of these facts, we direct the Assessing Officer to delete the demand made on account of non-collection of TCS and interest thereon. Accordingly ground No. 2 is also allowed.
|